Big north San Jose office building lands Silicon Valley buyer

SAN JOSE — A big north San Jose office building has been bought by a local real estate company, a sign that investors have maintained a healthy appetite for choice properties in the Bay Area’s tech hubs.

The building, located near the interchange of State Route 237 and Zanker Road in San Jose, has been purchased by an affiliate of Menlo Equities, a veteran Bay Area real estate company.

Holger Technology Partners, the Menlo Equities affiliate, paid $35 million for the building, which is at 300 Holger Way, according to documents filed on Nov. 24 with the Santa Clara County Recorder’s Office.

KBS Capital Markets Group sold the building, a structure that totals 99,600 square feet.

The just-sold building is one of eight that are in the District 237 tech campus on Holger Way. District 237 is a modern office campus located in San Jose’s “Golden Triangle”, a tech-dominated section of north San Jose that’s roughly bounded by State Route 237, Interstate 880 and U.S. Highway 101.

“The location offers close proximity to several world-leading technology firms, such as Google, which continues to expand its development footprint in San Jose,” said Gio Cordoves, western regional president for KBS. “This is just one example of the demand for office space in this market.”

CBRE commercial real estate brokers Joseph Moriarty, Scott Prosser, Jack Depuy, Brad Zampa and Mike Walker arranged the purchase of the 300 Holger Way building.

“300 Holger Way’s recent renovations and location near growing employers helped to attract investor interest,” said Moriarty, a CBRE executive vice president. “There is a significant opportunity to add value by capturing some of the tenant demand in the Silicon Valley market.”

At one point, KBS had owned all eight buildings in the office campus, a complex the company bought in 2013.

With the most recent transaction, KBS has now sold all eight of the buildings that it had initially bought.

KBS began unloading the office properties in 2018 through five different transactions, according to document documents.

— 400, 450 and 475 Holger Way, $97.4 million, in June 2018.

— 100 Headquarters Drive and 200 Holger Way, $95.2 million, June 2020.

— 250 Holger Way, $38.3 million, September 2020.

— 350 Holger, $50.5 million, December 2020.

— 300 Holger, $35 million, November 2021.

All told, KBS harvested a combined $316.4 million from the building sales over a period of a few years, which represents a 32% jump from the $239 million that KBS paid for all eight buildings in 2013.

“This location has evolved over the past 10 years into one of the more desirable in Silicon Valley, with the Highway 237 corridor benefiting from new office, retail and multifamily development,” KBS stated in its web post.

Cushman & Wakefield commercial real estate brokers Erik Hallgrimson, Steve Horton and Kelly Yoder have been seeking tenants for the building and provided market expertise for the transaction.

“This transaction represented a rare chance to acquire a fully renovated Class A office building in the premier northern San Jose market,” CBRE’s Prosser said.

Full article by George Avalos: https://www.mercurynews.com/2021/11/29/big-san-jose-office-building-silicon-valley-buy-tech-develop-covid/